On demand rental car insurance launched by LB Forsikring

Tuesday, 07 July 2020

Danish ICMIF member LB Forsikring has launched an insurance policy which would cover all types of car rentals in Denmark, whether it is an electric car rented on an hourly basis or a car rented for several days. The product also covers car sharing schemes.

Whilst car insurance targeted at people who do not own a car may not immediately sound like a type of insurance cover you can sell many policies for, LB Forsikring, Denmark's third largest private insurance company with almost 400,000 members, says this is precisely something their members will be keen to use. In recent years, car share schemes and rental car concepts have become a widespread phenomenon around Denmark, and this is precisely the trend that LB Forsikring wants to tap into.

Steen Holse Andersen, Chief Operating Officer says: “We can see a movement from owning a car to accessing mobility on demand and we would like to support that. Our most important task is to cover our members as best as possible, and with this new car insurance we will support all those who would like to make different and greener choices than the classic car insurance, without having to pay many different fees at individual companies.”

The concept is simple. For DKK 50 a month or DKK 600 a year, you get a car insurance for rented vehicles with an excess of DKK 0. The excess is DKK 0, regardless of whether it is one of the many electric cars that can be rented on an hourly basis in several large cities in Denmark, or whether someone rents a car for several days. The only stipulation of the policy is that the rented car is not driven out of Denmark.

The new rental car insurance product also provides access to legal guidance on how to deal with any dispute arising from the rental of a car that is covered by the insurance.

“In many ways, this is the car insurance example of a streaming service. You can choose what kind of car you want to rent, with whom and for how long, without having to pay an excess for each one. We've got you covered, just choose the transport solution that best suits your needs. This gives our members both freedom of choice and security. At the same time, for many people this will mean a saving, depending on how many times they rent a car,” says Steen Holse Andersen.

This new rental car insurance is mainly targeted at people without a car, there may be times when car owners wish to purchase the rental insurance cover too. Initially, however, Steen Holse Andersen believes that it will be people in the big cities who will mainly purchase the rental car insurance.